Critical milestone achieved for Mining License approvals

The Eritrean Ministry of Land, Water and Environment has accepted and approved the Social and Environmental Impact Assessment (SEIA) for the Colluli Project – key for mining license and project development approvals.

Danakali Limited (ASX:DNK) is pleased to announce that the Eritrean Ministry of Land, Water and Environment has accepted and approved the Social and Environmental Impact Assessment (SEIA) for the Colluli Potash Project.

The SEIA was submittedin April following a series of stakeholder engagements that were conducted post the completion of the definitive feasibility study (DFS), as announced on 30 November 2015.

Approval of the SEIA represents a critical milestone in the advancement of the Colluli Project and paves the way for the approval and issuance of the mining license and final project development approvals.

The acceptance and approval follows a comprehensive review of the SEIA by an Impact Review Committee, appointed by the Ministry. A series of engagements between the Committee and Danakali and Colluli Mining Share Company (CMSC) representatives, and an evaluation of the assessment relative to the original terms of reference took place over the last eight months.

Representatives of the Impact Review Committee visited the Colluli Project site in June 2016, followed by a visit in mid-July by the Eritrean Ministry of Energy and Mines, accompanied by senior officials of that ministry.

In its approval letter, the Ministry wrote “Having reviewed the responses from the company in its entirety, the Department of Environment appreciates CMSC for its proper addressing and incorporation of all the comments provided and accepts the SEIA.”

Managing Director, Paul Donaldson said

“This is a significant positive step in the approvals process and is the outcome of a very comprehensive body of work which was conducted throughout the feasibility phase, and a thorough review by representatives of the Ministry and the Impact Review Committee.

The Company continues progressing its Mining Agreement and Mining License, and we are positive that we can conclude this step of the process shortly. The Mining Agreement and License are the final approvals by the Ministry of Energy and Mines, meaning the company is getting closer to commencing the execution of the project.”